The entrepreneurial spirit in Ireland is thriving, with a growing number of individuals embracing self-employment. Driven by autonomy, flexibility, and passion, these individuals form a crucial part of the Irish economy.
However, the AXA Ireland report "The Allure and Anxiety of Self-Employment: A Balancing Act", reveals a concerning paradox: while many self-employed individuals report thriving, they also face significant hurdles, primarily financial instability, and a perceived lack of support.
Financial instability
The AXA report highlights the financial tightrope walked by many self-employed individuals. The report reveals that 45% of respondents cited financial instability as their biggest concern, driven by the unpredictable nature of income and the lack of traditional safety nets like paid sick leave and unemployment benefits.
This precarious financial situation can negatively impact mental health, relationships, and overall well-being. This anxiety is further compounded by rising costs, identified by 50% of respondents as their most significant threat in the coming year. Despite a sense of optimism, with 79% reporting their businesses as thriving, doing well, or stable, this underlying financial vulnerability remains a significant concern.
Bridging the gap
Beyond the immediate financial pressures, a lack of understanding about the self-employed sector further exacerbates the challenges. The AXA report exposes a stark disconnect between public perception and reality. While over 90% of businesses in Ireland are classified as small, the public estimates this figure to be much lower, around 38%.
This lack of awareness underscores the need for greater education about the true scale and impact of these businesses, particularly the self-employed who drive so many of them. John Caird, Commercial Director at AXA Ireland, emphasises the importance of addressing this perception gap, stating that closing this gap is "essential for fostering a more supportive environment for Ireland's entrepreneurs."
Mags Boland Murphy, Founder & Principal at Bofin Consultancy, and a key contributor to the AXA report, emphasises the need for a collaborative approach. She highlights the importance of continuous improvement through training and leveraging online platforms for self-employed individuals, stating that "knowledge can be invaluable." Boland Murphy also stresses the power of "savvy smart connection," urging individuals to engage with online and offline business groups for collaboration and support, reminding us that "people do business with people."
Crucially, she advocates for enhanced financial education, empowering individuals with the skills to manage their finances effectively, noting that "we need to be empowering business and financial learnings from the ground upwards." Boland Murphy champions a "solution mindset," encouraging innovation and engagement with the circular economy to reduce waste and connect with audiences.
Building a stronger ecosystem
To address these challenges, Boland Murphy proposes a series of actions for key stakeholders, including:
- Irish Consumers: She encourages conscious shopping at local businesses, raising awareness of Irish providers, and recognising the impact of supporting local livelihoods. "When you buy from local or Irish businesses you are supporting the Irish economy, livelihoods and households," she reminds us.
- Irish Government: Boland Murphy calls for financial education initiatives from a grassroots level, a centralised awareness campaign for existing government supports, a "Challenge Continuity Fund" to support businesses through difficult times, prioritised mental health resources, and streamlined regulations. She stresses the importance of simplifying bureaucratic processes, stating that this would help SMEs "see the wood for the trees" and clarify their legal and compliance obligations.
The AXA report provides a crucial roadmap for change. By working together, and heeding the advice of experts like Mags Boland Murphy, we can empower Ireland's self-employed to not just survive, but truly thrive, contributing to a stronger and more vibrant economy.
Find out more about AXA’s ‘Being self-employed shouldn’t be a risk’ campaign and download the full report.
